One of the biggest technology suppliers to the British rail network has warned operators are struggling with long-term investment decisions amid delays to network reforms.
Chris Barnes, CEO of Leeds-based Tracsis, said operators were ‘nervous to spend money’ on upgrades to critical infrastructure amid uncertainty over how Britain’s rail system will be governed amid plans for expanded public ownership of the network.
He told UKTN: “We’ve heard that legislation will be delayed again — that’s the biggest frustration. At least the Labour government is putting a plan together — it would be nice if they could just accelerate that.
“What we would like to see is clarity. What train operators are struggling with is long-term investment decisions…[they are] vert nervous about where they spend their money.
“There is still software in the rail industry that uses tech from the 1980s. Most of our work at the moment is coming from government-owned train operators. They know how to find the money — [but] you’ve got to provide them with the benefits case so they can go away and get the money.”
The government’s Passenger Railway Services (Public Ownership) Bill, which was unveiled in July and is currently in the final stages of going through Parliament, proposes to allow passenger service operations to be transferred into public ownership when current national rail contracts end, a move which claims to save taxpayers up to an estimated £150 million every year in fees.
Transport secretary Louise Haigh has said tap-in tap-out technology will be rolled out at a further 45 stations next year thanks to nearly £27 million of government funding, meaning simpler and more flexible train travel. Tracsis stands to be a major beneficiary as one of the biggest suppliers of pay-as-you-go ticketing systems to rail operators.
It comes as Tracsis today said it took a £2m knock in connection with the general election as it posted a small dip in sales. The company said it suffered a “period of pre-election activity restrictions that impacted the group’s trading in the final two months of the financial year, principally across the UK Rail Technology, Transport Consultancy and Traffic Data businesses.”
The London-listed business, which has more than 500 staff worldwide, posted revenue of £81m for the year to end July, a decline of 1% on last year, while pre-tax profits slumped from £7.1m to £1m. But the firm said it sees “significant long-term tailwinds as the industry looks to modernise and adopt digital solutions.”
Tracsis shares fell 7% to 618p in early trade in London. The stock has fallen by around a quarter over the past year.
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